01—Abstract
Summary
Summary of the 10-Q filed August 6, 2026. Cited figures are marked; the original filing is the authoritative source.
ConocoPhillips reported robust financial results for the second quarter and first half of 2026, driven by significantly higher crude oil and bitumen prices.
Total revenues for the quarter increased by 30% year-over-year to $19.16 billion, with net income more than doubling to $3.93 billiona. This strong performance translated into diluted earnings per share of $3.23. The company demonstrated its commitment to shareholder returns by distributing $3.0 billion to shareholders in the second quarter, comprising $2.0 billion in share repurchases and $1.0 billion in dividends.
ConocoPhillips also achieved its $5 billionb disposition target ahead of schedule by closing on agreements to sell noncore Lower 48 assets for $1.7 billion. Looking ahead, the company has entered into an agreement to acquire a significant equity holding in an Iraqi oil field joint venture, expected to close by year-end 2026, and continues to expand its LNG offtake strategy.
02—Key points
Key Highlights
- Net income for the three months ended June 30, 2026, was $3.93 billion, a substantial increase from $1.97 billion in the same period of 2025.
- Diluted earnings per share for the second quarter of 2026 were $3.23, compared to $1.56 in the prior year's second quarter.
- Total revenues and other income increased to $19.52 billion in Q2 2026 from $14.74 billion in Q2 2025, driven by higher commodity prices.
- ConocoPhillips returned $3.0 billion to shareholders in Q2 2026, consisting of $2.0 billion in share repurchases and $1.0 billion in ordinary dividends.
- The company achieved its $5 billion disposition target ahead of schedule by closing on agreements to sell noncore Lower 48 assets for approximately $1.7 billion.
- A significant strategic acquisition is planned: an agreement to acquire a 42% equity holding in an Iraqi oil field joint venture for an estimated $0.3-$0.5 billion cash outflow, expected to close by year-end 2026.
- Cash provided by operating activities for the first six months of 2026 was $11.7 billion, up from $9.6 billion in the comparable period of 2025, reflecting higher commodity prices.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 6, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $19.16B$14.00B | +36.8% |
| Cost of Revenue | $6.71B$5.08B | +32.0% |
| Gross Profit | $12.45B$8.92B | +39.6% |
| SG&A Expenses | $188.00M$250.00M | −24.8% |
| Net Income | $3.93B$1.97B | +99.4% |
| EPS (Basic) | $3.23$1.56 | +107.1% |
| EPS (Diluted) | $3.23$1.56 | +107.1% |
| Shares Outstanding (Basic) | 1.21B1.26B | −3.5% |
| Shares Outstanding (Diluted) | 1.21B1.26B | −3.6% |
05—Questions
Frequently Asked Questions
What were the key drivers of ConocoPhillips' financial performance in the second quarter of 2026?
The primary driver of ConocoPhillips' strong financial performance in the second quarter of 2026 was the significant increase in commodity prices, particularly for crude oil and bitumen. This led to substantially higher revenues and, consequently, higher net income and earnings per share compared to the same period in the prior year. Higher realized prices for crude oil and bitumen, combined with increased sales revenues from various segments, contributed positively to the results.
How is ConocoPhillips returning capital to shareholders?
ConocoPhillips is actively returning capital to shareholders through a combination of ordinary dividends and share repurchases. In the second quarter of 2026, the company distributed $3.0 billion to shareholders, comprising $2.0 billion in share repurchases and $1.0 billion in ordinary dividends. The company has a stated goal to return greater than 30 percent of cash from operating activities through cycles and has declared a third-quarter ordinary dividend of $0.84 per share.
What are the significant strategic initiatives ConocoPhillips is undertaking?
ConocoPhillips is pursuing several key strategic initiatives. They have agreed to sell noncore Lower 48 assets, achieving their $5 billion disposition target. They are also in the process of acquiring a 42% equity holding in an Iraqi oil field joint venture, which is expected to close by the end of 2026. Additionally, the company is expanding its commercial LNG strategy, increasing its offtake agreements, and has signed an agreement to re-enter Syria to increase production from gas fields.
How has ConocoPhillips' production performed, and what is the outlook?
Total production in the second quarter of 2026 was 2,248 MBOED, a decrease of 6% from the same period a year ago, primarily driven by normal field decline, partly offset by new wells online and adjusted for acquisitions/dispositions. Production decreases were also seen in the six-month period. The company expects third-quarter 2026 production to be between 2.29 to 2.32 MMBOED, and all full-year guidance items remain unchanged.
06—Continue